IN THE JUDGMENT OF PIAZZA AFFARI THE ACCOUNTS OF MPS AND TELECOM. DOUBLE RECORD IN WALL STREET, THE INDIANA STOCK FLYS
The rain of liquidity continues to water the lists and contain the effects of the outbreaks of fire in Ukraine. Tokyo adjusts to the euphoria of US price lists with a substantial rise of more than 2%. In evidence Nissan +5,4% which has revised its sales forecasts upwards. Shanghai is marking time, after the leap on Monday.
Il Toro has moved permanently to Mumbai which celebrates with a new leap forward the anticipations that by now take for granted the absolute majority of Modi, the leader of the Hindu party considered pro-business. On Wall Street yesterday was the record session. Both the Dow Jones +0,68% at 16.695 and the S&P 500 index +0,97% at 1896,65 reached a new all-time high. But the most robust rise was that of the Nasdaq +1,77%, thanks to the rebound of Internet and biotech stocks.
Sale Biogen +4,9%, TripAdvisor runs +5,8%. Also in evidence were Apple +1,3%, Google +2%, Amazon +3,4%, Facebook 4,5% and Twitter 6,2%. Positive session also for the European Stock Exchanges: London rose by 0,5%, Paris +0,3%, Frankfurt +1,2%. The Milan Stock Exchange also rose which, however, lost momentum towards the end. The FtseMib index closed with an increase of 0,4%, after navigating for most of the session around an increase of 1% (maximum +1,5%).
TREASURE, THE NEW BTP 3 GOES TO AUCTION TODAY
A day full of offers on the government bond front, starting with medium-long term Italian issues: up to 6,25 billion euros of BTPs, including the new three-year May 2017 coupon at 1,15% plus the reopening of the 7 years May 2021 and the two 'long' ones August 2034 and February 2037.
The forecasts are positive. Yesterday evening on the gray market the new three-year was trading at 1,14%, up from 0,93%, the lowest since the introduction of the euro, reached in the auction a month ago. Peter Chatwell, strategist at Crédit Agricole comments: “This week's auction calendar is quite busy and could lead to falls in the prices of European securities on the secondary market. It will be the Italian auctions that will be particularly interesting, given that paper in May 2017 has the lowest coupon of all BTPs and in the past low coupons have greatly attracted national investors".
The Italian Treasury yesterday successfully placed 6,5 billion 12-month BOTs at a yield of 0,65%, up slightly from 0,589% in the previous mid-April auction. The ten-year BTP was stable, with a yield of 2,96% and the spread, unchanged at 150. Meanwhile, Madrid has given a mandate to a group of banks to manage the issue of its first inflation-linked government bond: the launch of the bond , which will have a XNUMX-year term, should materialize this week.
The speeches of Constancio and Nowotny gave a further boost to the sentiment. In particular, the latter stated that, in the event that the ECB decides to act in June, a rate cut would be insufficient, and it would be more appropriate to launch a package of measures. On this, European equities accelerated, but peripheral bonds fell prey to consolidation following Friday morning's record highs.
BANKS
It was quarterly day. Unicredit +1,3% (after a maximum of +3,7%). The quarter closed with a net profit of 712 million euros, up 58,8% compared to the same period a year ago. Gross non-performing loans decreased by 1,1 billion euro (-1,3%), with a coverage ratio of 52,4%. It is the first contraction since 2008. CEO Federico Ghizzoni said that the net profit target of 2 billion in 2014 is now "closer".
Mps Bank +5,1%. After the close of the session, the accounts for the first quarter were disclosed: net loss of 174 million euro, after adjustments to loans of 477 million and with a negative and non-recurring effect of approximately 143 million due to higher expenses on Monti Bonds. The bank expects to sell 500 million of non-performing loans by June and has indicated a common equity tier1 of 10,8% at the end of March which rises pro forma to 13,3% considering the 5 billion capital increase announced which will serve to repay 3 of the 4,07 billion Monti Bonds.
Banking Popular di Milano it rose 1,8% after the quarterly results approved by the board last Friday. During the morning, the share had risen up to +5,1%. Ubi it advanced 0,62% after the assembly approved the governance changes on Saturday. Negative closure instead for Understanding -0,5% and Mediobanca -0,9%.
Among institutions with smaller capitalization Banca Carige it gains 3,86% driven by expectations of a decrease in the stake held by the Foundation.
ATLANTIA AT THE TOP OF THE LIST, MURDOCH WEIGHTS ON MEDIASET
Highlights yesterday utilities. Great Leap Forward by Atlantia +4,53% rewarded for accounts above expectations. In particular, the signs of a recovery in traffic and the favorable interest rate scenario confirm the analysts' positive view of the stock. Kepler Cheuvreux (rating buy) raised the target price on the stock from 19 to 21 euros and Equita Sim (buy) from 20,3 to 21,5 euros.
Purchases supported on Terna +2,39% to 4,02 euros which accelerated upwards with the breaking of the technical resistance set at 3,95 euros and updated the all-time high to 4,044 euros during the session. Good upside of Enel + 0,9%. Eni it rose by 0,4%. “There is a privatization programme; we evaluate all the hypotheses”. Pier Carlo Padoan, Minister of the Economy thus responded to a question on the rumors about a possible sale of another tranche of the bonds of the two state giants.
On the other hand, in decline Telecom which lost 1,39%. In the morning, the quarterly data approved yesterday by the board of directors will be released. Sales also on Mediaset -1,27% in the wake of the news that BskyB -2,30% has started preliminary negotiations with the parent company 21st Century Fox to evaluate the potential acquisition of Sky Italia and Sky Deutschland +6,6%. The Australian tycoon Rupert Murdoch is in fact considering grouping the Sky networks in Italy, Germany and the United Kingdom into a single European platform which would distribute the pay channels for the entire consumer audience.
THE PRYSMIAN LANDSLIDE CONTINUES. FIAT STILL DOWN
Sales on Prysmian still down by 2,49% in the wake of the disappointing quarterly results announced last week and which led several brokers to revise their assessments and target prices downwards. Giovanni Tamburi and Cesare d'Amico, shareholders of the cable group through ClubTre, rounded off their holdings with total purchases for 1,6 million.
Fiat -0,8%. Bank of America lowered Fiat's target price to 5,6 euros from 6 euros, confirming the negative Underpeform opinion. JP Morgan downgraded the entire European auto rating to Neutral from Overweight. Chrysler closed the first quarter in the red for 690 million dollars, a loss partly linked to the agreement with the UAW of January 2014. Revenues rose by 23% to 19 billion dollars. Other industrial stocks contrasted: Finmeccanica -1,2% StM + 2% Tenaris+ 0,9% Pirelli unchanged.
EXPORT DRIVES CUCINELLI, GODDESS CAPITAL AND STABLE GOODS SHINE
Brunello Cucinelli it closed just above parity at 20,40 euros. After the closure, the cashmere company communicated its results for the first quarter: revenues grew by 12,2% (+13,4% at constant exchange rates). Ebitda grew by 13,5%, net profit by 8,7% to 9,6 million euros. International turnover +17,6% represents 77% of sales. Italy is down by 2,7%.
Goddess Capital +6,20% after the news of the start of the exclusive negotiation for the sale to the Ramsay group of the entire investment held in Générale de Santé at the price of 16,75 euros per share. If a binding agreement is reached, a takeover bid will be launched on the French group.
Stable Goods gains 3,3% on the expectation of a maxi-merger between asset management companies in the real estate sector. Shoulder bag Seat -10,5% on the day of the quarter ended with a drop in Ebitda of 75%.
